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Ten days before Halloween, your local candy wholesaler puts all of its Halloween
candy on sale. This is an example of which type of discount?
a. Seasonal discount
b. Quantity discount
c. Zone pricing
d. Promotional allowance
e. Smart discount, since Valentine's Day is approaching and the wholesaler does not
want to be stuck with the merchandise
A local paint store offers a free clinic to teach customers how to hang wallpaper. This
service is an example of _____ a customer.
a. reaching
b. assisting
c. targeting
d. enabling
e. educating
The analysis, planning, acquisition, handling, and control of the merchandise
investments of a retail operation is termed:
a. inventory planning.
b. sales review/planning.
c. product ordering.
d. merchandise management.
e. merchandise acquisition.
Which of the following is NOT a common objective for a retailer's advertising
campaign?
a. Make customers in your trading area aware that you offer the lowest prices
b. Make customers aware of your large stock selection
c. Cultivate new customers
d. Increase sales
e. Make customers think of you first when a need for your products occurs
Which of the following is NOT an operating expense?
a. Rent
b. Cost of goods sold
c. Depreciation
d. Utilities
e. Wages
During the 'to market' era the major challenge was:
a. identifying a target market.
b. bringing merchandise to the market.
c. selling the merchandise.
d. determining the cost of merchandise.
e. locating a supplier of the merchandise.
Planned purchases at retail is equal to:
a. planned sales and planned reductions and BOM inventory minus planned EOM
inventory.
b. planned sales and planned EOM inventory minus planned reductions and BOM
inventory.
c. planned sales minus planned reductions, planned EOM inventory, and one-half BOM
inventory.
d. planned sales, planned reductions, and planned EOM inventory minus BOM
inventory.
e. planned sales plus planned reductions.
A _____ is based on the total amount purchased during a single purchasing event.
a. single purchase discount
b. cumulative discount
c. noncumulative discount
d. one-time discount
e. functional discount
A transient customer is a consumer who:
a. routinely shops multiple stores looking for the best price.
b. visits another store only when his/her regular store is closed.
c. visits the store while on vacation.
d. actively seeks an alternative store that offers the level of customer service he/she
feels is appropriate.
e. shops multiple stores because he/she prefers is indecisive.
When comparing customer theft and employee theft, which of the following statements
is false?
a. Over a dozen shoppers are caught for every time an employee is caught.
b. As many as 30 percent of American workers admit to stealing from their employers,
even if it is only a small item.
c. Employee theft amounts to over $800 per apprehension.
d. The average amount of merchandise recovered from a shoplifter is over $500.
e. Employee theft is most prevalent in food stores, department stores, and discount
stores.
A tying agreement:
a. ties a retailer to multiple wholesalers.
b. is an agreement whereby a retailer forces a seller to offer only their strongest
products or have all its products be excluded from the retailer's store.
c. ties one exclusive territory to the sale of one product.
d. requires that a retailer only buy merchandise from a certain group of suppliers.
e. exists when a seller with a strong product or service requires a buyer to purchase a
weak product or service as a condition for buying the strong product or service.
Walmart's Supercenters that serve wealthier shoppers who love deals belong to which of
the following general market segments?
a. Conscientious objectors
b. Value-price shoppers
c. Trendy quality seekers
d. One-stop shoppers
e. Price-sensitive affluents
You have decided that one of the goals of your retail expansion is to establish a loyal
customer base before the competition is able to do so. Therefore, when you enter a new
trading area with a new product or service, you should use a _____ price strategy.
a. late markdown
b. penetration
c. status quo
d. skimming
e. cost-plus
The two basic types of merchandise presentation are:
a. visual merchandising and nonvisual merchandising.
b. product merchandising and service merchandising.
c. hardline merchandising and softline merchandising.
d. fixture merchandising and wall merchandising.
e. on-shelf merchandising and visual merchandising.
The _____ Act requires companies to notify the government of their intent to merge.
a. Sherman
b. Clayton
c. Federal Trade Commission
d. Robinson-Patman
e. Hart-Scott-Rodino
Which element of the store's environment is concerned with the store's exterior design,
ambience, and lighting.
a. Merchandising
b. Productivity
c. Store design
d. Store planning
e. Visual communications
Given the following information, what initial markup percentage should be planned if
net sales are expected to be $500,000?
a. 28 percent
b. 36 percent
c. 30 percent
d. 39 percent
e. 45 percent
Which of the following statements applies to members of the college-educated market?
a. They are especially watchful of price, quality, and advertised claims.
b. The size of this group is expected to undergo a substantial decrease in the next
decade.
c. They are less sophisticated, discriminating and more dependent than other consumers
of their age and income level, when making retail purchases.
d. With the advent of the Internet, they will have no need for in-store salespeople.
e. Their buying behaviors do not differ from those of other consumers of their same age
who are not college educated.
A space productivity index:
a. is typically done when designing a new store's space allocations.
b. reports on the ability of space allocations to maximize the quantities of merchandise
carried.
c. analyzes the amount of shelf space allocated to particular individual brands across
several departments.
d. measures the percentage of the store's total gross margin from a particular category to
the category's percentage of total space utilized.
e. is based on industry or trade association data.
A local day center expands it's operating hours in order to provide child care for
individuals who work 2nd and 3rd shifts. This is an example of:
a. form reconfiguration.
b. possession reconfiguration.
c. target market reconfiguration.
d. time reconfiguration.
e. place reconfiguration.
All of the following are facets around which customers are operant resources EXCEPT:
a. enabling.
b. engagement.
c. co-creating.
d. assessment.
e. co-producing.
Shrinkage represents the loss of merchandise through theft, loss and damage.
A retailer only needs to consider its strengths and environmental opportunities when
formulating a strategic plan.
Asha's Boats has gross sales of $300,000 and cost of goods sold of $100,000. Net sales
equals $200,000.
U.S. families today are having more children than they have had historically.
In the percentage-of-sales method of budgeting for advertising, industry data or the
retailer's past experience should be used to determine suitable levels of expenditures.
Employees are the retailer's most valuable asset.
